Paraguayan Senate Passes Bill Regulating Crypto Trading and Mining
The Paraguayan Senate has approved a measure and is awaiting the president's assent.

A statute that creates tax and regulatory guidelines for companies working in the cryptocurrency and mining industries has been enacted in Paraguay after a year of debate and discussion on a complete crypto framework.
Senator Fernando Silva Facetti submitted the law last year, and it was approved by Congress in May. The bill places a lot of emphasis on the creation of a Ministry of Business and Commerce (MIC) to regulate companies that offer services to the cryptocurrency industry.
Amendments to the Bill
It was agreed that the National Securities Commission, Anti-Money Laundering Office, and National Electricity Administration (ANDE) would regulate activities while the Industry and Commerce Secretariat of Paraguay would oversee crypto mining within the nation when the Chamber of Deputies passed the bill in May with modifications.
Once these requirements had been met, the measure was sent back to the Senate in Paraguay, where it is now law. According to Senator Facetti, the changes made to the measure "enhanced the original proposal."
The key change put forward by the Chamber of Deputies concerned giving the Ministry of Industry and Commerce, the principal law enforcement agency, the ability to punish people or organizations for engaging in unauthorized cryptocurrency mining or service provision.
In addition, a registration for people or organizations seeking to provide cryptocurrency trading or custody services to third parties has been established. The National Securities Commission will be in charge of commercializing the seized assets, which is significant.
Additionally, for taxation reasons, businesses operating in the cryptocurrency industry will get the same treatment as those dealing with securities. They won't be required to pay value-added tax (VAT), but they will be subject to the income tax system.
President Mario Abdo Bentez is close to signing the measure into law, which particularly addresses crypto mining, commercialization, intermediation, exchange, transfer, custody, and/or administration of crypto assets or instruments.
Consumption of Industrial Electricity
The National Electricity Administration would oversee electricity delivery, according to a key provision of the law, while the Secretariat for the Prevention of Money or Asset Laundering will monitor investment activities carried out by cryptocurrency firms.
Therefore, industrial energy consumption authorization requests and licensing applications must be made by both individual and corporate crypto miners. They may accomplish this by informing the National Electricity Administration of their energy use schedule.
Notably, miners may have their energy supply shut off if they exceed ANDE's usage cap.
The regulation, according to Carlos Rejala, a Congressman who was instrumental in its creation, is intended to attract foreign miners who can afford to pay only 5 cents per kilowatt-hour for power. To put things in perspective, Bitfarms, one of the largest mining companies in Paraguay, has a 10 megawatt plant in Villarica.
Senator Enrique Bacchetta, who has questioned whether the plan would genuinely produce employment for residents, has been the major critic. Senator Esperanza Martinez agrees with him, saying that the energy consumption rate of miners considerably exceeds the amount of employment they would generate.
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